Tesla expands into China's grid market

The economic and financial colossus of Shanghai is set to face winter power demand peaks with greater ease and at lower costs, as the first phase of Tesla's grid-side energy storage project is scheduled to begin operating within the year, according to a senior executive with the US electric vehicle maker.

With a total investment of around 4 billion yuan ($558.58 million), the project represents Tesla's first grid-side energy storage station on the Chinese mainland. Using its Megapack energy-storage batteries, the electric vehicle manufacturer looks to tap into China's promising energy storage market by connecting its facility with the country's power grid.

Situated in the Lin-gang Special Area of China (Shanghai) Pilot Free Trade Zone, the first phase of the project is projected to come into operation this year, which will provide about 300 megawatt-hours of energy storage capacity upon its completion, helping stabilize the city's electricity supply during peak demand periods in summer and winter, said Dong Kun, general manager of Tesla's energy business in China.